IHG sees mobile traffic overtake desktop

Talking to analysts, CEO Richard Solomons said that "consumers understand the benefits of booking direct" and that direct bookings provided richer data and generated brand loyalty.

He added that when its Guest Reservation System comes online this year, it will offer more direct booking possibilities for its brands and increase the proportion even more.

When asked about its relationship with the OTAs, he repeated the party line that "for price-sensitive leisure travellers, OTAs are a good route to market for us. They are expensive, but if they can deliver profitable and incremental business, we'll go for it."

Digital revenues for 2016 came in at $4.3 billion, of which $1.6 billion is attributed to mobile. IHG said that during the year mobile accounted for more than 50% of its traffic.

Bookings made through the IHG app - which has now been downloaded two million times - are up 50% year-on-year. And more than 1800 properties allow guests to check out using their device.

Its IHG Rewards scheme is central to its attempts to get more direct bookings, and was boosted during the year by its Your Rate initiative, giving members access to preferential rates and exclusive deals. The loyalty scheme contributed 2% more to the revenues than last year with a 16% increase in enrollments.

And the number of engaged loyalty scheme members - defined as those who stay at an IHG property more than six times in a year - has increased by 7%.

When asked about how the business was responding to Millennials, he said that IHG was dealing with changes in all types of travellers and that the real challenge was to appeal to different segments within the same property.

"Personalisation is more important than trying to demarcate around ill-defined generations," he said.

Overall during 2016 its operating profit rose 4% to come in at $707 million.